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SEC Investigates Six Companies
On Pension, Benefit Accounting

By

Ellen E. SchultzStaff Reporter of THE WALL STREET JOURNAL

Updated Oct. 18, 2004 12:01 a.m. ET

The Securities and Exchange Commission is investigating whether six large companies could have manipulated earnings by using certain assumptions to calculate liabilities and costs for pensions and retiree health benefits.

A spokesman for the SEC stressed that the agency has no evidence of violations but added that the companies, which he didn't identify, weren't selected at random. The inquiry focuses on assumptions companies use to calculate current pension expenses, which can have an effect on income. The inquiry was reported...